Quote:
From the Wall Street Journal entitled "America Feels Pain of Steel Tariffs"
Less than three months after the Bush administration suggested its stiff new tariffs on steel imports would have only a limited impact on prices, the levies are sending waves of pain through America's manufactruing sector - including steep price inceases, supply shortages, and layoff threats.
"The Bush administration just assumed that people could eat this - that it would be no big deal," says Charles Blum ... "But it has become a big deal very fast."
Mr Bush's advisers, watching the effects warily, now concede that they have been taken by surprise [despite reports they had and cited above from The Economist]. They point to the advice the steel manufacturers offered before the tariifs were announced on March 5. Thomas Usher, chief executive of US Steel told the Senate in February that the levies "will only result in modest and reasonable price increases." [Noted earlier, his company has now doubled and as much as tripled some prices on steel.]
...
This has never happened before -- people are breaking contracts all up and down the supply chain," said Richard McClain of ... Metalforming Technologies. ... most of his middlemen voided existing contracts and raised prices by more than 30%. He is also having trouble getting enough steel. "If we can't get steel, we'll have to cut jobs." ...
Bush aides also hint that they might boost imports by being extra generous with tariff exemptions. ....
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Exactly how politicians get more campaign contributions from big business. Is it called blackmail or racketeering? No, just legalized bribery or solicting campaign funds. You want an exemption? Visit godfather George or one of his wiseguys. Who elected this president anyway? The mafia?